This bill modifies existing provisions related to mortgage payment satisfaction in Minnesota. It amends Minnesota Statutes 2024, section 47.208, subdivision 1, to require that within 45 days of receiving full payment or performance of the loan secured by a mortgage, a mortgagee or mortgage servicer must issue and submit a satisfaction of mortgage to the county recorder or registrar of titles. Additionally, a new subdivision is added to address situations where a payoff statement provided by a mortgagee or servicer is understated. It allows for the issuance of a corrected payoff statement and protects individuals who rely on the original understated amount from claims of inaccuracy.

Furthermore, the bill amends section 507.41 to stipulate that if a mortgagee fails to discharge the mortgage within 45 days after receiving full payment or performance, they may be liable for actual damages incurred. The previous requirement for a request and tender of reasonable charges before the discharge is removed, streamlining the process for borrowers seeking satisfaction of their mortgage. Overall, these changes aim to enhance the clarity and efficiency of mortgage satisfaction processes in Minnesota.

Statutes affected:
Introduction: 47.208, 507.41